Paperclips Blog | Holmen Results

  • 02.02.2012

    Tupperware Brands Reports Fourth Quarter 2011 Results

    Tupperware Brands Corporation today reported fourth quarter 2011 sales and profit, with a sales increase in dollars of 3% and 7% in local currency+.

    GAAP net income for the quarter of $86.9 million, or $1.50 per diluted share, compared with 2010 fourth quarter GAAP net income and EPS of $80.7 million and $1.26 per share, respectively.  Adjusted diluted earnings per share of $1.50 in the quarter was 12 cents, or 9%, better than 2010 in U.S. dollars, including a negative foreign currency impact of 7 cents.  Excluding the impact of foreign exchange on the comparison, adjusted diluted earnings per share was up 19 cents, or 15%.

    For the 53 weeks ended December 31, 2011, the Company reported sales of $2.6 billion, a 12% increase in dollars and 9% in local currency compared with 2010.  For the same period, the Company's GAAP net income of $218 million decreased 3%, and diluted earnings per share of $3.55, was up 2 cents or 1% versus prior year.  Excluding certain adjustment items, diluted earnings per share of $4.45 improved 20% in U.S. dollars compared with 2010, and excluding a favorable 11 cent impact on the comparison from foreign exchange rates, improved 16%.

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  • 02.02.2012

    Quad Acquires Commercial and Specialty Printer Williamson Printing Corporation

    Quad/Graphics, Inc., a global provider of print and related multichannel solutions, today announced it has purchased Dallas-based Williamson Printing Corporation, a full-service commercial and specialty products printer specializing in short- to medium-runcatalogs, case-bound books, direct mail and other promotional products.The acquisition expands the company’s growing U.S. network of commercial and specialty print facilities to the Dallas-Fort Worth area, home to one of the largest concentrations of corporate headquarters in the United States.

    “Williamson is an exceptional printing company with a long list of regional and national clients,” said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. “It has a superior reputation for quality, service and innovation, and its experience and success in growing its commercial and specialty printing business will complement our own growth plans for that segment.”

    Williamson’s two Dallas facilities will join Quad/Graphics’ Commercial & Specialty group, which also operates facilities in Burlington, Menomonee Falls and New Berlin, Wis.; Enfield, Conn.; and Leominster, Mass. The group provides publishers, marketers and retailers with specialized print products and services, including specialty books, catalogs and directories; marketing collateral; print-on-demand custom publications; specialty binding; and mailing and fulfillment.

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  • 02.01.2012

    RockTenn Continues to Grow and Invest in Automated Sorting Capabilities for Recycled Materials

    RockTenn announced today the opening of a new single-stream recycling facility in Memphis, TN, expanding the Company’s recycling capabilities and increasing its presence and service capabilities.

    The new 150,000 square-foot facility will complement RockTenn’s established single-stream recycling plants in Chattanooga and Knoxville. The automated, single-stream system allows designated recyclable materials to be fully commingled during collection instead of separated into different bins, a process that offers significant benefits to homes and businesses.

    The opening of the Memphis plant, as the first single-stream facility in the city’s metropolitan area, represents a key investment in RockTenn’s Recycling and Waste Solutions growth plan. This is RockTenn’s ninth single-stream system within its thirty-nine recycling facilities. The Company will continue to expand its recycling powers nationwide in the upcoming year in order to reinforce its commitment to provide easy recycling solutions to better serve customers worldwide.

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  • 02.01.2012

    Neenah Completes Purchase of Premium Brands from Wausau Paper

    Neenah Paper, Inc. announced today completion of the previously announced purchase of certain premium paper brands and other assets from Wausau Paper Corp.

    Key components of the transaction include: A cash payment of $21 million to acquire: Astrobrights®, Astroparche® and Royal brands. Exclusive license rights for a portion of Exact® brand specialty business, including Index, Tag and Vellum Bristol. Approximately one month of finished goods inventory. Converting equipment for retail grades. A supply agreement under which Wausau will manufacture and supply certain products to Neenah Paper during a transition period.

    Annual sales from the purchased brands are estimated to be approximately $100 million and the Company expects to incur one-time costs related to the integration of approximately $10 million.

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  • 02.01.2012

    American Eagle Outfitters to Open Stores Throughout Israel

    American Eagle Outfitters, Inc. today announced that its first store in Israel will open to the public on Thursday, February 2, at Ramat Aviv Mall, in Tel Aviv. Ten additional stores are planned over the next month, in locations such as The Big Mall in Petach Tikva, Kiryat Ono Mall, and Mall of Haifa. The franchise stores will be operated by Fox-Wizel Ltd., a leading retailer and wholesaler in the region.

    AEO has been expanding its international presence for the past three years, now with 21 stores in 10 countries, partnering with retail experts in each region. Today, there are franchise stores open in Russia, China, Hong Kong and various cities throughout the Middle East. The first stores in Japan are slated to open in the coming months.

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  • 02.01.2012

    Ahlstrom posts financial statements bulletin for 2011

    Continuing operations October–December 2011 compared with October–December 2010: Net sales EUR 371.3 million (EUR 416.8 million); Operating loss EUR 4.2 million (EUR 9.0 million loss); Operating profit excluding non-recurring items EUR 1.7 million (EUR 12.7 million).

    Highlights in October–December 2011: Divestment of the Home and Personal business area was concluded except for the Brazilian operation that is expected to be transferred by the end of first quarter 2012. A new vision ‘Inspiring people, passionate about new ideas, growing with our customers’ was introduced to define the kind of company we aim to be in the future. Acquisition of a 49.5% stake in a developer of battery technology Porous Power Technologies, LLC.

    Continuing operations January–December 2011 compared with January–December 2010: Net sales EUR 1,607.2 million (EUR 1,636.3 million); Operating profit EUR 20.1 million (EUR 46.5 million); Operating profit excluding non-recurring items EUR 49.7 million (EUR 66.8 million).

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  • 02.01.2012

    Amazon.com Announces Fourth Quarter Sales up 35% to $17.43 Billion

    Amazon.com, Inc. today announced financial results for its fourth quarter ended December 31, 2011.

    Operating cash flow increased 12% to $3.90 billion for the trailing twelve months, compared with $3.50 billion for the trailing twelve months ended December 31, 2010. Free cash flow decreased 17% to $2.09 billion for the trailing twelve months, compared with $2.52 billion for the trailing twelve months ended December 31, 2010.

    Common shares outstanding plus shares underlying stock-based awards totaled 468 million on December 31, 2011, compared with 465 million a year ago.

    Net sales increased 35% to $17.43 billion in the fourth quarter, compared with $12.95 billion in fourth quarter 2010. Excluding the $101 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 34% compared with fourth quarter 2010.

    Operating income was $260 million in the fourth quarter, compared with $474 million in fourth quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $5 million.

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  • 02.01.2012

    Bemis Company Publishes Corporate Responsibility Report

    Bemis Company, Inc. today announced that it has published a Corporate Responsibility Report highlighting Bemis’ sustainable business practices. The report profiles Bemis’ programs and practices that benefit its business in economically viable, environmentally sound, and responsible ways. It is organized across three categories: Economic Sustainability, Environmental Sustainability, and Social Sustainability.

    “As a multinational supplier of flexible packaging and pressure sensitive material, a fundamental component of our strategy is to operate a profitable, ethical company, and be responsible stewards of our environment and communities,” said Henry Theisen, President and Chief Executive Officer of Bemis Company, Inc.  “We will continue our commitment to achieving results and delivering on expectations with character and accountability.”

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  • 02.01.2012

    Billerud to acquire UPM-Kymmene’s packaging paper business

    Billerud Finland Oy, a wholly-owned subsidiary of Billerud AB, has signed an agreement with UPM-Kymmene (UPM) to acquire UPM’s packaging paper business in Pietarsaari and Tervasaari with sales of approximately EUR 220 million (SEK 2 billion) in 2011. Billerud pays EUR 130 million (approximately SEK 1.2 billion) for the business. The acquisition will significantly reduce Billerud’s pulp exposure and strengthen the offering within packaging paper. In addition, the currency exposure is also reduced.

    ”We see great potential in the acquired business as it will now be integrated in a business focused on packaging paper. The acquisition will give us a strong platform to continue developing our offering within smarter packaging solutions. In addition, the acquisition significantly reduces our pulp exposure and adds a much larger Euro cost base, which we view positively.” says Per Lindberg, President and CEO of Billerud.

    The acquisition includes one paper machine in Pietarsaari and one paper machine in Tervasaari, both in Finland. Both machines rank among the largest and most efficient of its kind in Europe and are assessed as well invested and well maintained. The machines produce packaging paper (sack/kraft paper) used in a broad range of areas such as food, retail, construction and other industries. Annual production capacity is approximately 300,000 tonnes. The business has approximately 185 employees. Other activities at the mill sites will remain owned and operated by UPM.

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  • 02.01.2012

    Oil Trades Near One-Week Low in New York on Rising Supplies, U.S. Outlook

    Oil advanced in New York for the first time in four days after China’s manufacturing index unexpectedly rose, boosting speculation that the world’s second- biggest crude consumer is withstanding Europe’s debt crisis.

    Futures gained as much as 0.9 percent after China’s purchasing managers’ index rose to 50.5 from 50.3 in December. The median estimate in a Bloomberg News survey was for a reading below the 50 level that marks the difference between expansion and contraction. Oil fell for a third day yesterday after the government said consumer confidence and business activity cooled in the U.S. Data from the American Petroleum Institute indicated oil stockpiles rose to the highest level since November.

    The “positive” data from China boosted oil after it traded near a one-week low earlier in the session, Andy Riddell, head of retail derivatives at London Capital Group Holdings Plc., said in an e-mail. “Any sign of bad economic numbers coming out of the U.S. will see longs bailing out.”

    Crude for March delivery increased as much as 86 cents to $99.34 in electronic trading on the New York Mercantile Exchange and traded at $99.32 at 11:15 a.m. London time. The contract yesterday declined 0.3 percent to $98.48 a barrel, the lowest close since Jan. 20. Prices slid 0.4 percent in January, falling for a second month.

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  • 02.01.2012

    Catalyst Paper announces initial order under CCAA

    Catalyst Paper Corporation announced today that the company and certain of its subsidiaries have obtained an Initial Order from the Supreme Court of British Columbia under the Companies’ Creditors Arrangement Act (CCAA).  The terms and conditions of the restructuring plan have not yet been determined by the company.

    The company also announced that JP Morgan has agreed to provide debtor-in possession (DIP) financing to Catalyst, which is expected to provide the company with up to approximately $175 million of available capital during the CCAA proceedings.  Advances under the DIP will be available after approval by the Court, which the company expects to obtain on February 3, 2012.  The Initial Order provides the company with access to an amount the company believes is sufficient to fund operations until the Court hearing on February 3, 2012.  The company’s operating revenue combined with the proposed DIP financing are expected to provide sufficient liquidity to meet ongoing obligations to employees and suppliers and ensure that normal operations continue during the restructuring process.  Catalyst management will remain responsible for the day-to-day operations of the company.

    The company intends to apply for recognition of the Interim Order under chapter 15 of title 11 of the US Code.

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  • 02.01.2012

    Domtar enters into an agreement for the sale of its Lebel-sur-Quévillon, Québec assets

    Domtar Corporation today announced that it has signed a definitive agreement with Fortress Global Cellulose Ltd ("Fortress"), and with a subsidiary of the Government of Québec, for the sale of its Lebel-sur-Quévillon assets. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2012.

    "The sale of the Lebel-sur-Quévillon assets to a strategic buyer is a positive outcome for the community and we wish them success for the future," said John D. Williams, President and Chief Executive Officer of Domtar. "The buyer will convert the mill to the manufacture of dissolving pulp and we will support them through this transition by marketing and selling their initial production of paper grade softwood pulp which is contractually limited to a maximum of 100,000 metric tons."

    As per the agreement, all pulp and sawmilling assets including the buildings and equipment will be sold to Fortress for the nominal sum of $1.00 and all lands related to the facilities will be sold to a subsidiary of the Government of Québec for the nominal sum of $1.00.

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  • 02.01.2012

    Hearst and Condé Nast Sell Comag to Jim Pattison Group

    Comag Marketing Group, the Princeton, New Jersey-based national magazine distributor jointly owned by Hearst and Condé Nast, has been sold to the Jim Pattison Group. The deal signals the exit of the two publishers from the magazine distribution business and is being positioned as an effort to heal a newsstand supply chain that's long been fraught with competing interests and inefficiencies.

    Jay Felts will continue as CMG's president and the company's headquarters will remain in Princeton. Michael Korenberg, JPG's vice chairman, will become chairman of CMG. The deal does not include CMG UK, which will continue to be owned by National Magazine Company Ltd. and Condé Nast UK.

    According to Korenberg, Hearst and Condé Nast had not put Comag on the block, but after about a year of conversations, a deal became a more viable option.

    The deal greatly expands JPG's reach into the market. JPG is based in Vancouver, BC and owns wholesaler The News Group, which bought Anderson News' assets when that wholesaler shut down in 2009. The News Group is estimated to have about a 50 percent market share in the U.S.

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  • 02.01.2012

    Portucel announces results for 2011

    In a year marked by a particularly harsh economic climate, the Group recorded turnover of approximately € 1.5 billion, representing growth of 7.4% over the previous year. This increase was due essentially to growth in uncoated woodfree (UWF) printing and writing paper, made possible by rising output from the new paper mill, and by the growth in power output.

    The new UWF paper mill in Setúbal achieved output at year-end 2011 equivalent to 97% of its nominal capacity, producing approximately 485 thousand tons of paper. Growing output allowed the Group to achieve a 7% increase in the quantity of paper placed on the market which, combined with rising paper prices over the course of the year, resulted in overall growth in paper sales of more than 9%.

    Highlights: 2011 compared to 2010: Group turnover grows by 7.4%; Exports of € 1 233 million representing 95% of pulp and paper sales; EBITDA of € 385.1 million; Power output hits 1.9 TWh; Net debt down by € 230 million; Sales of mill brands set new record.

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  • 02.01.2012

    Ilim Group is awarded Proof of Leadership in Forest Management Certification

    Following the results of 2011, Ilim Group was acknowledged as the leader of forest management certification. The respective Proof of Leadership was awarded to Ilim Group by the Russian Branch of the Forest Stewardship Council (FSC). Therefore Ilim Group has proved once again its leadership in forest management certification in Russia. As a reminder, all forest areas leased by Ilim Group, which is over 5.16 million hectares, have been certified by FSC. The Company’s share accounts for 18.4% of all certified forests in Russia.

    A FSC Forest Management Certificate guarantees that only economically sustainable, socially and environmentally responsible forest management methods were used during logging operations, all requirements for reforestation were observed, and the rights of local community and indigenous peoples were fully respected.

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  • 02.01.2012

    Menasha Packaging Announces Acquisition of The Strive Group

    Menasha Packaging Company announced today that it has acquired The Strive Group of Chicago. Both companies are family-owned and privately held. Terms of the transaction were not disclosed.
              
    According to Mike Waite, president of Menasha Packaging, “The acquisition of Strive will enhance our merchandising supply chain model and strengthen our geographic coverage. Customers are increasingly turning to companies that can manage their entire merchandising process and the addition of Strive to Menasha Packaging will improve our offerings and strengthen our competitive position.”  
     
    The acquisition will make Menasha the largest independent in-store promotional solutions provider to retailers and CPGs in the United States as well as strengthen its traditional packaging business. 
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  • 02.01.2012

    UPM to build the world's first biorefinery producing wood-based biodiesel

    UPM is to invest in a biorefinery producing biofuels from crude tall oil in Lappeenranta, Finland. The industrial scale investment is the first of its kind globally. The biorefinery will produce annually approximately 100,000 tonnes of advanced second generation biodiesel for transport. Construction of the biorefinery will begin in the summer of 2012 at UPM’s Kaukas mill site and be completed in 2014. UPM’s total investment will amount to approximately EUR 150 million.

    ”The biofuels business has excellent growth potential. The quality of our end product and its environmental characteristics has gained significant interest among a wide range of customers, and the investment is profitable.  Lappeenranta is the first step on UPM’s way in becoming a significant producer of advanced second generation biofuels. This is also a focal part in the realisation of our Biofore strategy”, says UPM President and CEO Jussi Pesonen.

    UPM ’s advanced biodiesel, UPM BioVerno, is an innovation which will decrease greenhouse gas emissions of transport up to 80% in comparison to fossil fuels. The product’s characteristics correspond to those of the traditional oil-based fuels and highly complement today’s vehicles and fuel distribution systems.

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  • 02.01.2012

    UPM continues to invest in efficient energy generation

    UPM continues to invest in efficient energy generation and builds a new combined heat and power plant at the UPM Schongau mill in Germany. The target is to significantly reduce energy costs as well as to secure the energy supply. The total investment is EUR 85 million.

    The new power plant will generate process heat as well as electricity for the mill. It will also provide sustainable and energy efficient district heating for roughly 750 households and public institutions such as local school and hospital in Schongau. The renewed energy supply at the mill will be based on the highly efficient combined heat and power technology utilising gas as a fuel.

    “The new gas power plant will improve the security and self-sufficiency of energy supply to our mill,” explains Winfried Schaur, General Manager, UPM Schongau. “The renewal of the energy generation ensures efficient production and will safeguard the competiveness of the mill. Furthermore, it guarantees a sustainable paper production loop based on innovative and low-emission technologies.”

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  • 02.01.2012

    Avery Dennison Announces Fourth Quarter and Full-Year 2011 Results

    Avery Dennison Corporation today announced preliminary, unaudited fourth quarter and full-year 2011 results. All non-GAAP financial measures are reconciled to GAAP in the attached tables. Unless otherwise indicated, the discussion of the Company’s results is focused on its continuing operations.

    Fourth Quarter 2011 Results by Segment:  Label and Packaging Materials sales grew compared to the prior year due to the benefit of pricing actions taken to offset raw material inflation. Sales in Graphics and Reflective Solutions grew compared to prior year due to higher volume. Operating margin declined 40 basis points to 6.9 percent as increased raw material costs and costs associated with restructuring were largely offset by the benefit of pricing actions and productivity initiatives. Excluding costs associated with restructuring, operating margin was roughly flat. Retail Branding and Information Solutions (RBIS) Sales declined due to lower unit demand from retailers and brands in the U.S. and Europe reflecting caution about consumer spending. Operating margin declined 180 basis points to 2.7 percent as lower volume and increased costs associated with restructuring were partially offset by the benefit of productivity initiatives. Excluding costs associated with restructuring, operating margin was roughly flat.

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  • 02.01.2012

    Catalyst Paper to fle for creditor protection

    Catalyst Paper Corporation announced today that to facilitate an orderly restructuring of its business and operations, the board of directors of the company has approved a filing for an Initial Order from the Supreme Court of British Columbia to commence proceedings under the Companies’ Creditors Arrangement Act (CCAA).  The terms and conditions of the restructuring plan have not yet been determined by the company.

    The operations of Catalyst and its subsidiaries are intended to continue as usual and obligations to employees and suppliers during the restructuring process are expected to be met in the ordinary course.  Catalyst management will remain responsible for the day-to-day operations of the company.  The company expects that the Interim Order will provide that while the company and its subsidiaries are under CCAA protection, all proceedings on the part of their creditors will be stayed.

    The company previously announced a consensual recapitalization transaction under the Canada Business Corporations Act (CBCA) that had the support of certain of the holders of the company’s 11% senior secured notes due 2016 and 7 3/8% senior notes due 2014 who were parties to a Restructuring and Support Agreement (Agreement). The Agreement provided that, among other conditions, the recapitalization transaction was subject to the following two conditions being met by January 31, 2012: (a) a new labour agreement ratified by all six union locals at the company’s BC mills and (b) two-thirds support of all 2014 and 2016 noteholders. Since these conditions will not be met, the company will not be proceeding with a recapitalization under the CBCA.

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  • 01.31.2012

    Crude Oil Heads for Monthly Gain on Signs of EU Progress, Tension in Iran

    Oil headed for the third monthly gain since September after Greece’s Prime Minister said debt- swap talks in have made progress, easing concern that Europe’s sovereign debt turmoil will curb demand.

    Futures increased as much as 1.1 percent in New York after slipping yesterday to the lowest settlement in more than a week. Crude also rallied as equities gained and the dollar weakened after Greek Prime Minister Lucas Papademos said following a European Union summit in Brussels that he is committed to debt- swap talks with bondholders. Speculation that sanctions may reduce oil exports from Iran heightened as international nuclear inspectors met with officials in Tehran.

    “There’s risk-on this morning,” which is lifting equities and commodities, said Ole Hansen, a senior manager of trading advisory at Saxo Bank A/S in Copenhagen. “We’ve got a host of geopolitical situations among the major producers and that will keep the market supported,” he said, citing Iran tensions and output halts in South Sudan and Nigeria.

    Crude for March delivery gained as much as $1.21 to $99.99 a barrel in electronic trading on the New York Mercantile Exchange. It was at $99.81 at 10:34 a.m. London time. The contract yesterday fell 78 cents to $98.78, the lowest closing level since Jan. 20. Prices have risen 1 percent this month and are headed for their biggest January gain since 2006.

    Brent oil for March settlement advanced $1.01, or 0.9 percent, to $111.67 a barrel on the London-based ICE Futures Europe exchange for a gain of 4.1 percent this month.

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  • 01.31.2012

    Champion Reports Net Loss for Quarter, Fiscal Year

    Champion Industries announced a net loss of $4.0 million for the year ended Oct. 31, 2011, compared to net income of $0.5 million for the year ended Oct. 31, 2010. The company reported a net loss of $5.4 million for the quarter ended Oct. 31, 2011, compared to net income of $0.9 million for the same quarter of 2010.

    On a core net income basis, Champion reported net income of $1.0 million for the years ended Oct. 31, 2011 and 2010. Core net income is defined as net loss income as reported, adjusted for restructuring and other charges, non-cash impairment charges, gain on early extinguishment of debt from a related party and interest rate swap.

    The results for 2011 over 2010 reflected a substantial decrease in earnings, primarily as a result of non-cash impairment related charges associated with goodwill, trade name and masthead in the amount of $8.7 million or $5.4 million net of tax on a basic and diluted basis. The impairments are a result of the acquisition of The Herald-Dispatch daily newspaper in 2007.

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  • 01.31.2012

    Plum Creek Reports Results for Fourth Quarter and Full Year 2011

    Plum Creek Timber Company, Inc. today announced fourth quarter earnings of $61 million, or $0.38 per diluted share, on revenues of $315 million. Earnings for the fourth quarter of 2010 were $59 million, or $0.37 per diluted share, on revenues of $356 million. Earnings for the fourth quarter of 2010 include a $13 million, or $0.08 per diluted share, loss on the early extinguishment of debt.

    Earnings for the full year of 2011 were $193 million, or $1.19 per diluted share, on revenues of $1.17 billion. Earnings for the full year of 2010 were $213 million, or $1.31 per diluted share, on revenues of $1.19 billion. Results for the full year of 2010 include an $11 million, or $0.07 per diluted share, after-tax gain on the first-quarter sale of certain natural gas assets. As a result, income from continuing operations for 2010 was $202 million, or $1.24 per diluted share.

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  • 01.31.2012

    Sappi Fine Paper North America Launches 2011 Sustainability Report

    Sappi Fine Paper North America today announced the launch of its 2011 Sustainability Report, the company's first ever regional report focusing on its environmental and social responsibility performance. The report illustrates how sustainability is fundamental to Sappi's business strategy and future success, underscoring its commitment to corporate transparency. Showcasing the company's strong sustainability performance in North America, the report demonstrates that Sappi is not only leading the industry in sustainability metrics but is also raising the bar on future sustainability goals to advance change in the marketplace. Among its most recent initiatives, Sappi has extended its participation in a pilot project in Maine with the Sustainable Forestry Initiative®. It has also become a member of the Forest Stewardship Council™(FSC®) to support sustainable forestry through chain of custody certification.

    Sappi Fine Paper North America's 2011 Sustainability Report highlights the company's performance against its current five-year goals and outlines new five-year goals, which measure Sappi's impact on the environment; its social responsibility to employees, customers and constituents in the communities in which we operate; and its prosperity as a business. These goals were designed by Sappi to establish best practices across the company and produce results in key areas of public concern and operational impact.

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  • 01.31.2012

    The McGraw-Hill Companies Reports 17% Increase in Adjusted Diluted 4Q EPS of $0.63

    The McGraw-Hill Companies today reported adjusted diluted earnings per share of $0.63 from continuing operations in the fourth quarter of 2011, an increase of 17% compared to $0.54 for the same period in 2010. On an as reported basis, diluted earnings per share of $0.47 from continuing operations in the fourth quarter of 2011 decreased 4% compared to $0.49 for the same period in 2010.

    Excluded in 2011 from fourth quarter earnings per share were a $66 million restructuring charge for severance related to a workforce reduction of approximately 800 positions and $10 million in one-time separation expenses necessary to complete the Growth and Value Plan.  Excluded in 2010 from fourth quarter earnings per share were restructuring and lease impairment charges of $27 million.

    On an adjusted basis, net income from continuing operations in the fourth quarter of 2011 grew by 10% to $184 million.  Revenue in the fourth quarter increased by 2% to $1.5 billion.

    For the full year 2011, adjusted earnings per share were $2.91, a 9% increase compared to adjusted earnings per share of $2.68 in 2010.  The 2011 results exclude a $66 million restructuring charge and $10 million in separation expenses for the Growth and Value Plan.  The 2010 results exclude restructuring and lease impairment charges of $27 million and gains on divestitures of $11 million.  On an as reported basis, full year 2011 diluted earnings per share from continuing operations were $2.75, a 4% increase compared to $2.64 in 2010.  On an adjusted basis, net income from continuing operations in 2011 grew by 6% to $883 million.  Revenue in 2011 increased by 3% to $6.2 billion.

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  • 01.31.2012

    China promotes recycled paper and a reduction in paper consumption

    China will promote recycling paper and reducing its use in order to save resources and protect the environment, according to the country's new five-year plan for its paper industry.

    The authorities should urge people to cut back on using high-quality paper such as sheets with high whiteness, said the country's 12th Five-Year Plan (2011-2015) for the Paper Industry, released last week.

    Current paper product standards should be revised to encourage the production of energy-saving and emission-reducing paper, and promote the substitution of paper packaging for alternatives, said the plan.

    The plan requires government purchasers to give priority to paper products mixed with waste paper, and to reduce paper use by switching to digital systems.

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  • 01.31.2012

    UPS Delivers Record 4Q Results

    UPS today announced fourth quarter 2011 adjusted diluted earnings per share of $1.28, a 21% improvement over the prior-year period. Total revenue increased 6% to $14.2 billion and adjusted operating profit climbed 17% to more than $2 billion.

    Last Friday, the company announced a change in pension accounting to a mark-to-market methodology. Adopted in the fourth quarter of 2011 and applied retrospectively, this new method resulted in after-tax charges in 2011 and 2010 of $527 million and $75 million, respectively. Also, in the prior-year period, UPS recorded a net after-tax gain of $32 million from the sale of certain non-core business units in the Supply Chain and Freight segment. On a reported basis, fourth quarter 2011 diluted earnings per share were $0.74, a decline of 28% from the same quarter last year.

    For the full year 2011, UPS achieved a new high in adjusted diluted earnings per share at $4.35. On a reported basis, diluted earnings per share were $3.84.

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  • 01.31.2012

    Potlatch Reports Fourth Quarter and Full Year 2011 Results

    Potlatch Corporation today reported financial results for the fourth quarter and full year ended December 31, 2011.
    "Economic conditions remained challenging throughout 2011, which is reflected in our fourth quarter and full year results," said Michael Covey, chairman, president and chief executive officer of Potlatch Corporation. "For full year 2011, earnings from continuing operations were $40.3 million, which was comparable to 2010. In our Resource segment, we experienced varying conditions between our regions. Demand remained strong in our Northern region, which kept timber prices and harvest volumes at favorable levels. In fact, we were even able to shift a portion of our harvest from the Southern region to the Northern region to capture better pricing opportunities. In our Southern region, fiber availability due to dry weather kept prices depressed most of the year, which was the primary driver of our harvest deferral. Wood Products had a solid year, with operating income and shipments comparable to last year, and Real Estate had another very good year in 2011, with four large non-strategic timberland sales and continued steady demand for HBU and rural real estate properties," concluded Mr. Covey.
    Q4 2011 FINANCIAL SUMMARY: In Q4 2011, Potlatch had a loss from continuing operations of $1.5 million, or a loss of $0.04 per diluted common share, compared to earnings from continuing operations of $8.9 million, or $0.22 per diluted common share in Q4 2010. In Q4 2010, the company completed a non-strategic timberland sale of approximately 29,000 acres in Wisconsin and 17,400 acres in Arkansas to RMK Timberland Group, a timber investment management organization, for $36.1 million, which provided $0.16 of non-recurring positive EPS impact.
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  • 01.30.2012

    Gannett Co., Inc. Reports Fourth Quarter and Full Year Results

    Gannett Co., Inc., a leading international media and marketing solutions company, today reported fourth quarter and full year 2011 financial results.  Highlights are summarized below:

    Earnings per diluted share, on a GAAP (generally accepted accounting principles) basis were $0.49 for the fourth quarter of 2011 compared to $0.72 for the fourth quarter last year.

    Earnings per diluted share from continuing operations for the 2011 fiscal year were $1.89 compared to $2.35 for 2010.

    Excluding special items in 2011 and 2010, fourth quarter earnings per diluted share were $0.72 compared to $0.83 for the same quarter in 2010.

    Earnings per diluted share excluding special items for the 2011 fiscal year were $2.13.

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  • 01.30.2012

    Oil Falls a Second Day on Speculation EU Talks May Fail to Resolve Crisis

    Oil dropped for a second day in New York on speculation that European Union leaders meeting today may fail to resolve the region’s debt crisis, while OPEC’s secretary-general said the market is well-supplied.

    Futures slipped as much as 0.9 percent as stocks dropped and the dollar strengthened. EU chiefs will gather in Brussels today to complete a German-led deficit-control treaty and endorse a 500 billion-euro ($660 billion) rescue fund. Hedge funds and other large speculators increased wagers on rising crude prices, the Commodity Futures Trading Commission’s Commitment of Traders report on Jan. 27 showed.

    “The market is taking off risk before the meeting,” said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo, who predicts Brent crude will average $107 a barrel this quarter. “Ahead of this meeting, sentiment is less optimistic.”

    Crude for March delivery fell as much as 85 cents to $98.71 a barrel in electronic trading on the New York Mercantile Exchange. It was at $98.89 at 10:26 a.m. London time. The contract lost 14 cents to $99.56 on Jan. 27. Prices are 0.1 percent higher this month.

    Brent oil for March settlement was at $110.95 a barrel, down 51 cents, on the London-based ICE Futures Europe exchange.

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  • 01.30.2012

    Catalayst Paper Announces Crofton Unions Voting Results

    Catalyst Paper Corporation advised today that at votes taken this weekend, one union local at the Crofton mill voted down a new labour agreement while the other union local voted to support a new labour agreement. Unanimous ratification of a new labour agreement by January 31, 2012 is a condition of the company’s recapitalization transaction announced on January 14, 2012.

    Local 2 of the Pulp, Paper and Woodworkers Union of Canada (PPWC) voted down the new labour agreement at a ratification meeting on Saturday. PPWC represents approximately 380 employees at the Crofton pulp mill.

    On Friday, Communications, Energy and Paperworkers Union of Canada (CEP) local 1132 voted to support the new labour agreement, joining locals 1, 76, 592 and 686 which had earlier ratified the agreement to take effect at expiry of the current agreement April 30, 2012. The CEP locals represent 700 employees at the company’s Crofton, Powell River and Port Alberni paper mills. Details of the proposed agreements are not being disclosed at this time.

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  • 01.30.2012

    Catalyst Paper gains additional support for recapitalization – extends early consent date

    Catalyst Paper Corporation announced that it has gained additional support for the proposed recapitalization transaction and now has the support of holders of approximately 79.47% of the company’s 11% senior secured notes due 2016 (the Senior Secured Notes) and holders of approximately 54.96% of the company’s 7 3/8% senior notes due 2014 (the Senior Notes were issued under the company’s former name, Norske Skog Canada Limited).  Holders of the Senior Secured Notes and Senior Notes who are parties to the Restructuring and Support Agreement (the Agreement) (or have signed joinder agreements to the Agreement) have agreed to vote in favour of and support the recapitalization transaction. The company will continue to solicit and expects further support for the recapitalization.

    The company also announced that it has extended the early consent date to 6:00 p.m. (Eastern) on January 30, 2012.  Under the Agreement, a holder of Senior Notes that signs the Agreement (or a joinder to the Agreement) on or before the early consent date is entitled to receive its share, pro rata with other holders of Senior Notes who sign on or before the early consent date, of 4.5% of the company’s common shares.  These shares are in addition to the pro rata share of 15% of the company’s common shares and warrants that all holders of Senior Notes are entitled to receive under the recapitalization.

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  • 01.30.2012

    International Paper, Temple-Inland Extend DOJ Review Period

    International Paper Company and Temple-Inland Inc. today announced that they have agreed to extend the U.S. Department of Justice's ("DOJ") review period with respect to International Paper's acquisition of Temple-Inland until February 13, 2012 to provide the parties with time to enter into binding documentation to resolve the DOJ's concerns with respect to the pending transaction.

    International Paper Chairman and CEO John Faraci said, "We have been working constructively with the DOJ to address their concerns and anticipate entering into a definitive agreement on terms that are acceptable to all parties.  The acquisition of Temple-Inland is a compelling value proposition for International Paper shareholders, and will create numerous benefits for our customers and employees."

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  • 01.30.2012

    Cenveo Announces Agreement to Sell Forms and Business Documents Group to Ennis, Inc.

    Cenveo, Inc. today announced that it has agreed to sell its Forms and Business Documents Group to Ennis, Inc., manufacturer of printed business products & apparel headquartered in Midlothian, Texas. The divestiture of the Documents Group, including the Printegra and PrintXcel brands, to Ennis is expected to better position the business for continued growth and success. The sale is expected to close during February 2012. Terms of the transaction were not disclosed.

    Robert G. Burton, Sr., Chairman and Chief Executive Officer stated: "Cenveo's Documents Group has built its leading position and strong reputation on producing business forms and document products to meet a variety of business customer needs. This divestiture allows Cenveo to focus on our core operations including labels, specialty packaging, envelopes, print and content management. We remain committed to executing our game plan of operating niche growth businesses while using our cash flow to invest in and grow our higher margin product groups and de-leveraging our balance sheet to achieve our stated leverage targets by the end of next year. I look forward to sharing our fourth quarter results and outlook for 2012 when we release earnings next month."

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  • 01.30.2012

    Kappa Books Acquires Modern Publishing

    Kappa Books announced Thursday that it has acquired Modern Publishing, a division of Unisystems that has been in the coloring and activity business for more than 40 years. The two companies’ operations will be merged, but Kappa will retain the Modern name and will market Modern’s line of mass market children’s books through a new division headed by longtime Modern president Andrew Steinberg.

    “We decided it’s time,” Steinberg says. “It’s become more and more challenging to do what we do. We wanted a partner that understood the business and could make it work. They have the printing strength and the distribution strength, and we have the licensing strength. It’s about taking both of our skill sets and merging them.”
     
    Kappa’s core business is puzzle books, but it also sells reference titles and some coloring, activity, story and other children’s books. It holds the Sesame Street license for a line of board books, as well as Woman’s Day, Chicken Soup for the Soul, and TV Guide for puzzle book series. The acquisition will add Modern’s Lisa Frank, Fisher Price, Hot Wheels, Zhu Zhu Pets, Hello Kitty, Smurfs, Lalaloopsy, and other licenses to Kappa’s portfolio.

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  • 01.30.2012

    ThermoSafe(R) Brands Announces Price Increase

    ThermoSafe Brands, a business unit of Sonoco, announced a price increase of 4 -7 percent across most of its product portfolio, effective March 5, 2012. This price increase will affect all expanded polystyrene (EPS) and polyurethane (PUR), including custom and cataloged shipper solutions and components globally.

    The price increase is necessary to cover rising costs in raw materials, labor, energy and transportation. "At ThermoSafe, we continually invest in our operations, technology, people and infrastructure to ensure we offer industry leading solutions, products and services at competitive prices," stated Mary Kate Phillips, director of North American Sales. "Despite our efforts to offset cost increases through Lean initiatives, we reached a point where we must raise prices to offset the ongoing inflation in our costs."

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  • 01.27.2012

    Oil Heads for First Weekly Gain in Three: Total Sees $100 Brent Support

    Oil headed for its first weekly gain in three, trading near a one-week high in New York amid signs of economic recovery in the U.S., the world’s biggest crude consumer.

    Futures gained as much as 0.8 percent, advancing for a third day. The U.S. Commerce Department may say today that economic growth accelerated in the fourth quarter. Durable goods orders rose more than forecast in December, according to data published yesterday, and a report this week showed gasoline demand grew the most in more than two months. Total SA Chief Executive Officer Christophe de Margerie said it would take a “real recession” to send Brent crude below $100 a barrel.

    “To see a lower price of oil, below $100, you really would need to have a real recession, and I don’t think we will get a real recession,” de Margerie said in an interview on Bloomberg TV with Maryam Nemazee from Davos, Switzerland.

    Crude for March delivery on the New York Mercantile Exchange rose as much as 80 cents to $100.50 a barrel and was at $100.30 a barrel at 11:05 a.m. London time. Yesterday, the contract gained 30 cents to $99.70, the highest settlement since Jan. 19. Prices have climbed 1.9 percent this week and 17 percent in the past year.

    Brent oil for March settlement on the London-based ICE Futures Europe exchange was at $111.42 a barrel, up 63 cents.

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  • 01.27.2012

    Cascades Tissue Group Launches First-Of-Its-Kind Unbleached, 100 Percent Recycled Bathroom Tissue

    North America's fourth largest producer of towel and tissue paper, Cascades Tissue Group today announced the launch of Cascades® Moka™ 100 percent recycled unbleached bathroom tissue, a first-of-its-kind product available to the Away-from-Home market in late August. Beige in appearance, Cascades Moka offers commercial purchasers the highest hygienic qualities and softness while significantly reducing the environmental impact associated with manufacturing a highly common, yet also single-use product. In addition to eliminating chemical whitening, Cascades' value-added tissue product is made of a pulp mix composed of 100 percent recycled fiber, 80 percent of which is post-consumer material and 20 percent are recovered corrugated boxes. The product is also offset with 100 percent Green-e® certified renewable wind electricity; saving 2,500 pounds of CO2 emissions for each ton produced.

    A detailed life cycle analysis (LCA) of the new pulp mix used in Cascades Moka, which was undertaken by the company, revealed a reduction in overall environmental impact by at least 25 percent when compared to the pulp mix used in the traditional Cascades 100 percent recycled fibre bathroom tissue. The latter had been regarded as the sustainable tissue exemplar in recent years but includes a chlorine-free whitening process for aesthetics.

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  • 01.27.2012

    Deluxe Reports Fourth Quarter 2011 Financial Results

    Deluxe Corporation announced its financial results for the fourth quarter ended December 31, 2011.

    Fourth Quarter 2011 Highlights: Revenue for the quarter was $366.4 million compared to $351.5 million during the fourth quarter of 2010. Revenue increased 4.2% compared to 2010, with growth in Small Business Services more than offsetting declines in the personal check businesses.

    Gross margin was 64.5 percent of revenue compared to 64.0 percent in 2010. Favorable impacts from price increases and the Company’s continued cost reduction initiatives more than offset increased material costs and delivery rates in 2011.

    Operating income in 2011 was $74.0 million compared to $60.9 million in the fourth quarter of 2010. Restructuring and transaction-related costs were $3.1 million in 2011 versus $7.8 million in 2010. The 2011 costs were primarily attributable to the Company’s on-going cost reduction initiatives. Results for 2011 also included an asset impairment charge of $1.2 million related to a vacant facility. Operating income was 20.2 percent of revenue compared to 17.3 percent in the prior year driven primarily by the increase in Small Business Services revenue.

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  • 01.27.2012

    Mobile Action Codes Increased 439 Percent in Top 100 Mags Last Year

    Mobile action codes, which include 2D barcodes, QR codes, Microsoft Tags and watermarks, have seen a tremendous uptake in magazine media in the last year. According to a recent study by mobile marketing firm Nellymoser, the top 100 magazines by circulation increased usage of the codes by 439 percent between the first and fourth quarters.

    According to the study, there were 352 codes appearing in the top 100 titles in Q1, which increased to 1,899 in Q4—a total of 4,468 action codes appeared during the year.

    Advertisers accounted for the vast majority of the codes—4,011—and by September the ratio of advertiser codes to editorial codes was 25:1.

    Interestingly, editorial codes changed from video extensions of magazine features to sweepstakes-oriented programs.

    Among other findings, by December 1 out of every 12 magazine ad pages had an action code. QR codes and Microsoft Tags dominated at 97 percent of all codes in the fourth quarter of 2011—but QR codes were by far the most popular at 72 percent of all used. Microsoft Tags were the more popular format for editorial use.

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  • 01.27.2012

    New commercial NCC plant proves growing momentum for innovative forest products

    The Forest Products Association of Canada (FPAC) says the opening of the world’s first nano-crystalline cellulose (NCC) plant in Canada is clear evidence of the rapid transformation of the forest sector and its growing role in the emerging bio-economy.

    Leading edge research by FPInnovations has led to the official opening today of the CelluForce plant in Windsor Quebec which will fabricate NCC  for eventual use in such products as paints and coatings, films and barriers, textiles, and composites.

    “This kind of development underscores the new business model that consolidates the economics of wood and pulp and paper production with the extraction of innovative new bio-energy, bio-chemicals and bio-materials,” says the President and CEO of FPAC, Avrim Lazar. “Extracting more value from every tree harvested is going to have an extraordinary impact for Canada economically, environmentally and socially.”

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  • 01.27.2012

    Price increase for Koehler Thermal Papers

    Papierfabrik August Koehler AG announces a price increase for thermal paper in North America by 5% effective April 1, 2012 due to continued escalation of raw material costs.
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  • 01.27.2012

    Metso-supplied containerboard line starts up at Saica Containerboard in the UK

    The Metso-supplied complete containerboard production line, PM 11, for Saica Containerboard UK Ltd., successfully came on stream on January 15, 2012 at Partington, near Manchester in the United Kingdom. The record-breaking start-up speed was 1,105 m/min with a basis weight of 95 g/m2.

    Three days later, on January 18, the first sellable paper reels were produced and tested, leaving the mill and reaching the first customers shortly afterwards.

    The new 8.2-m-wide PM 11 has an annual production capacity of approximately 400,000 tonnes of lightweight testliner and fluting grades in the basis weight range of 75 to 125 g/m2, out of 100% recycled raw material. The design speed is 1,700 m/min.

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  • 01.27.2012

    Pira forecasts $820 billion global packaging market by 2016

    The global packaging market is expected to reach $820 billion by 2016, according to “The Future of Global Packaging to 2016,” from Pira Intl.

    Driven mainly by increasing demand for packaging in emerging and transitional economies, a 3% annual growth rate will focus on board products and rigid plastics, with $40 billion and $33 billion in cumulative predicted growth respectively to 2016.

    Pira says growth will be driven by trends such as growing urbanization, investment in housing and construction, a burgeoning healthcare sector, and the rapid development still evident in the emerging economies, including China, India, Brazil, and some eastern European countries. An increase in personal disposable income in the developing regions fuels consumption across a broad range of products, with consequential growth in demand for the packaging of these goods.

    More specifically, robust growth in demand for rigid plastic packaging, especially in sectors like drinks, cosmetics, toiletries, and household and personal care products, is stimulating packaging consumption.

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  • 01.27.2012

    Tembec reports financial results for its first quarter ended December 24, 2011

    Consolidated sales for the three-month period ended December 24, 2011, were $401 million, as compared to $422 million in the comparable period of the prior year. The Company generated a net loss of $16 million or $0.16 per share in the December 2011 quarter compared to a net loss of $11 million or $0.11 per share in the December 2010 quarter. Operating earnings before depreciation, amortization and other specific or non-recurring items (EBITDA) was $12 million for the three-month period ended December 24, 2011, as compared to EBITDA of $12 million a year ago and EBITDA of $19 million in the prior quarter.

    The Specialty Cellulose and Chemical Pulp segment generated EBITDA of $27 million on sales of $152 million for the quarter ended December 24, 2011, compared to EBITDA of $30 million on sales of $180 million in the prior quarter. Sales decreased by $28 million primarily as a result of lower shipments.

    The Paper segment generated EBITDA of $10 million on sales of $85 million for the quarter ended December 24, 2011, compared to EBITDA of $6 million on sales of $84 million in the prior quarter. Higher prices and newsprint shipments were offset by lower coated bleached board shipments. In terms of markets, coated bleached board remained healthy while newsprint remained stable despite continued weaker North American demand statistics.

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  • 01.27.2012

    Media General Reports Fourth-Quarter 2011 Results

    Media General, Inc., a multimedia provider of broadcast television, digital media and print products, today reported operating income for the fourth quarter of 2011 of $27.7 million, excluding non-cash intangible asset impairment of $6 million and severance expense of $3.5 million. This compared with operating income of $36.7 million in the 2010 fourth quarter, excluding severance expense of $1.2 million and an insurance gain of $956,000. The impairment charge in the current quarter was related to DealTaker.com, as discussed below.

    The company reported a net loss in the fourth quarter of 2011 of $3.3 million, or 15 cents per share, including the severance expense and impairment. Adjusted for severance and impairment, income in the fourth quarter of 2011 was $4.5 million, compared with income in the 2010 fourth quarter of $9.3 million, adjusted for severance expense and the insurance gain.

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  • 01.26.2012

    Domtar consolidates its ownership of the Attends brand with an acquisition in Europe

    Domtar Corporation today announced the signing of a definitive agreement for the acquisition of privately-held Attends Healthcare Limited ("Attends Europe"), manufacturer and supplier of adult incontinence care products in Europe, from Rutland Partners for €180 million. The closing of the transaction is expected during the first quarter of 2012, subject to customary closing conditions.

    "The acquisition of Attends Europe moves us further along the path we started down last summer and it consolidates our ownership of the Attends brand on both sides of the Atlantic. With this acquisition, we are adding another platform for growth with a well-established business that has the critical mass to drive product development and brand growth with our current North American business," said John D. Williams, President and Chief Executive Officer of Domtar. "Demand for incontinence care products in Europe is strong, and our intent is to double earnings within the next five years."

    Attends Europe sells and markets a complete line of branded and private-label adult incontinence care products. The company distributes its products in several channels with its own sales organizations in nine European countries. Attends Europe operates a world-class 374,000 square foot (34,000 square meter) manufacturing facility with eight production lines; a research and development center and a distribution center in Aneby, Sweden; it also operates distribution centers in Scotland and Germany. Attends has 413 employees, estimated annual run rate sales and EBITDA of €140 million and €23 million respectively.

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  • 01.26.2012

    Vistaprint Reports Fiscal Year 2012 Second Quarter Financial Results

    Vistaprint N.V., a leading online provider of professional marketing products and services to micro businesses and the home, today announced financial results for the three month period ended December 31, 2011, the second quarter of its 2012 fiscal year.

    “We are very pleased with our second quarter,” said Robert Keane, president and chief executive officer. “The quarter reflects momentum in our strategy initiatives and investment in resources which we are confident will lead to future growth. Revenue was in the upper half of our guidance range due to strong sales of holiday and small business products during our seasonally strongest quarter of the year. Earnings per share excluding gains from our recent share repurchase activity exceeded our expectations due to a favorable non-operational foreign currency benefit, favorability in our tax rate, the timing of some planned operating expenses, and gross margin improvements. We were able to deliver these great results in the organic business while negotiating, performing due diligence, carrying out closing activities and planning integration activities for two acquisitions.”

    Highlights: Revenue for the second quarter of fiscal year 2012 grew to $299.9 million, a 28 percent increase over revenue of $234.1 million reported in the same quarter a year ago. Excluding Albumprinter revenue of $15.7 million, total second quarter revenue was $284.2 million. There was no revenue recognized during the quarter from the acquired Webs business. Excluding the estimated impact from currency exchange rate fluctuations and revenue from acquired businesses, total revenue grew 21 percent from the same quarter a year ago. Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the second quarter was 66.8 percent, compared to 66.3 percent in the same quarter a year ago. Excluding the Albumprinter business, gross margin was 67.0 percent. Operating income in the second quarter was $32.5 million, or 10.9 percent of revenue, and reflected a 15 percent decrease compared to $38.2 million, or 16.3 percent of revenue in the same quarter a year ago.

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  • 01.26.2012

    Nation's Largest Specialty Golf Retailer Opening 10 New Locations

    Golfsmith, the nation's largest golf retailer announced plans to open 10 new stores and relocate four existing locations in fiscal 2012. The openings and relocations combined will result in a 17.5% increase in square footage.

    Golfsmith Planned New Store Locations In 2012:  Cleveland, OH; Washington DC metro area — 2 stores; Chattanooga, TN; Nashville, TN; Atlanta, GA; Baltimore, MD; Christiana, DE; San Antonio, TX.

    Golfsmith's plans for the four relocations are within existing markets. These stores will move into spaces that provide an updated and expanded golf retail experience that mirrors the Company's new stores. All scheduled store openings and relocations will be complete by the end of the year.

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  • 01.26.2012

    1-800-FLOWERS.COM, Inc. Reports Solid Revenue and Bottom-Line Performance for its Fiscal 2012 Second Quarter

    1-800-FLOWERS.COM, Inc., the world's leading florist and gift shop, today reported revenues from continuing operations of $239.8 million for its fiscal 2012 second quarter ended January 1, 2012, compared with revenues from continuing operations of $228.9 million in the prior year period. The Company said the 4.8 percent increase, or $11.0 million, reflected growth across all three of its business segments driven primarily by continued positive trends in its Consumer Floral segment, which grew 10.3 percent, or $8.5 million. Total revenue growth also benefited from several small acquisitions completed in the second half of fiscal 2011 and early in the first quarter of fiscal 2012.

    Gross profit margin for the quarter was 41.8 percent compared with 42.4 percent in the prior year period, primarily reflecting product mix and lower gross margins in the Company's BloomNet and wholesale gift basket businesses. Gross profit margin in the Company's ecommerce channels increased 30 basis points driven by a continued focus on reduced promotional pricing and enhanced manufacturing efficiencies. Operating expenses as a percent of revenue improved 20 basis points to 31.6 percent compared with 31.8 percent in the prior year period. The improved operating expense ratio primarily reflects the increased revenues for the quarter as well as the Company's continued focus on improving leverage across its business platform.

    EBITDA from continuing operations for the quarter increased 13.1 percent, or $3.9 million, to $33.3 million compared with EBITDA of $29.5 million in the prior year period. EBITDA for the quarter includes a $3.8 million pre-tax gain from the sale of 17 Fannie May Fine Chocolates retail stores as part of a 62-store franchise deal announced November 21, 2011. The Company noted that, while the sale of the stores significantly accelerated its Fannie May franchising program, the loss of revenues associated with the stores in the quarter reduced EPS by approximately $0.01 per share for the period.

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